- During my daily analysis of the gold market, the first thing that I see is that we have had a couple of days’ worth of stabilization, and now it looks like traders are comfortable enough to start getting aggressive.
- At this point, I think you have a situation where traders are looking at the longer term uptrend and realizing that the recent pullback, although very rapid, really is but a blip on the radar when it comes to the overall attitude of the market.
Top Regulated Brokers
Technical Analysis
The technical analysis for the gold market is still fairly bullish, but it is worth noting that we have seen quite a bit of downward damage over the last several days. This is not to say that we won’t recover, because quite frankly I think we will. However, there is going to be a little bit of hesitation on the part of Psalm to jump in and start buying gold. If we can get a break above the 50 Day EMA, near the $2633 level, then we could see more momentum jumping into the market and perhaps sending gold higher.
Short-term pullbacks at this point in time should end up being buying opportunities based on the massive amount of support that we had seen near the $2550 level. It’s also worth noting that we had reached almost halfway between the 50 Day EMA and the 200 Day EMA indicators, which is generally an area where you see a lot of noisy behavior. Because of this, it’s not overly surprising that somebody took a shot at gold here.
Keep in mind that the gold market of course is highly sensitive the geopolitical events, and over the weekend we have seen some tensions ratchet up as both Pres. Biden and Kier Starmer decided that it would be a good idea to allow the Ukrainians to use NATO missiles the target deep inside Russia. This was promptly followed up by a threat from Vladimir Putin to use nuclear weapons in response. Because of this, the geopolitical tension is probably going to start taking a front seat again, which of course is bullish for gold in general.
Ready to trade our Forex daily analysis and predictions? We’ve made a list of the best Gold trading platforms worth trading with.